I found your entry interesting do I've added a Trackback to it on my weblog ...

11:39 pm October 8, 2010

Cong Ming wrote:

"The Australian dollar has also got help from China, which has kept a firm lid on any yuan appreciation and ensured continued Chinese demand for Australian exports."

Hang on, wouldn't a higher yuan mean the Chinese would have even better purchasing power of Australian exports negating any impact of slower export sales. Take tires for an example. Increased tariffs imposed by US regulators has not really led to a slowing of Chinese exports. Why? Production is ultimately limited in the West, as we have already handed it over to the Chinese to take over, as we blindly continue to consume. Get competitive, get rid of the Mexican border, get rid of minimum wages and go head-to-head with cheap imports. Long-term, wages will naturally rise.

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